House Hunting in ...the Seychelles

This house, on the island of Mahe in the Seychelles, is on the market for $2.45 million. It overlooks Beau Vallon, a popular beach.Credit
Andrew Henderson for The New York Times

A FOUR-BEDROOM TWO-AND-A-HALF BATH HOUSE WITH OCEAN VIEWS

$2.45 MILLION

This three-year-old property is on Mahe, the largest of the 115 islands that make up the nation of Seychelles. The house has 335 square meters of living space — or 3,606 square feet, at 10.76 square feet to the square meter. Perched on a hillside and overlooking Beau Vallon, a popular Indian Ocean beach, it was built of concrete and has a slate tile rood. The main living area has double-height ceilings and access to a 260-square-meter wraparound deck. The eat-in open kitchen has teak countertops. Off the kitchen is an outdoor shower area.

The four bedrooms are of similar size; each has water views and access to the deck. The master bedroom has an en-suite bathroom. The home is sold furnished.

The 2,080 square meters of grounds are landscaped. The area beneath the house and deck, currently used for parking, could be converted for residential or storage purposes, according to the listing agent. The house is within walking distance of the beach and about a 10-minute drive from Victoria, the capital; the airport is 20 minutes away.

MARKET OVERVIEW

The Seychelles has a population of around 90,000 and a small real estate market. “Not that many houses are sold,” said Philippe Boullé, a lawyer and notary at the Seychelles office of Victoria Chambers, an international law firm.

But size has been a significant factor in keeping prices stable, despite the global downturn, said Vivian Rassool, director of Realty Seychelles. “Not a lot is for sale at any given time,” he said. “A lot of property owners did not take out mortgages, and during the recession they’ve held on to them.”

Over the past four to five months, however, housing prices for inland properties have dipped some 5 to 7.5 percent. Basically, the recession has only just made itself felt, Mr. Rassool said. “Honestly, it takes things longer to reach here — Seychelles is so far away.” Beachfront properties are rare, and therefore their value has held.

The recent fluctuations occur against a backdrop of sharply rising prices over the last decade, said Jean-Paul Maurel, director at Premium Realty and the listing agent for the property featured here. “The value of property in Seychelles is mostly in the land” rather than buildings, he added, since developable land is limited.

Prices throughout Mahe vary widely, from $50 a square meter for land with no view, up to $1,500 a square meter for prime beachfront, he said. House prices start at $160,000; a furnished two-bedroom might run as high as $640,000, and the market tops out in the millions. The price on this house reflects its private setting — no other homes in view — as well as its large plot of land and popular location.

According to Mr. Maurel, prices are 20 percent higher in Praslin, the second-largest island in the Seychelles, where much of the property is on or near the beach.

To appeal to foreign buyers, he added, a handful of high-end developments have gone up in recent years. These include Eden Island, a marina development on a man-made island linked to Mahe by a bridge, which has one-bedrooms starting in the $300,000s. At the higher end, at the Four Seasons Resort Seychelles, prices start at $7 million.

Property can be priced in rupees, the local currency, or United States dollars, euros or pounds, Mr. Maurel said, depending on the seller and the target market.

WHO BUYS IN SEYCHELLES

The Seychelles often attracts buyers from South Africa, Italy, France, Britain and Russia, Mr. Maurel said.

Foreign buyers should expect to pay around 17.5 percent of the purchase price in taxes and fees. They must request permission to purchase from the government, a process typically handled by a notary for a fee of 1.5 percent, Mr. Maurel said. In addition to an 11 percent sanction duty, there is a 5 percent stamp duty, according to Mr. Boullé.